Lumia fails to shine as Nokia posts 1.34bn loss

Nokia's first stab at reversing its torrid fortunes appears not to have taken off.

The company has reported a €1.34bn loss for its 2012 Q1 with smartphone sales tumbling 52 per cent year-on-year.

2m Lumia handsets were sold in the period, and Nokia is predicting a similar performance from Q2.

Net sales for the quarter fell from €10.4bn to €7.35bn, with total smartphone sales reaching 12m – again, down from 24.2m in the same quarter last year. North American phone sales flat lined at just 600k units

"We have launched four Lumia devices ahead of schedule to encourage awards and popular acclaim," Nokia CEO Stephen Elop stated.

The actual sales results have been mixed. We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging."

"We're navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater-than-expected competitive challenges.

"We are confident in our strategy and focused on responding urgently in the short term and creating value for our shareholders in the long term."

Nokia's most recent Lumia handset, the Lumia 900, was not included the results and launched recently to strong reviews.